Sell It All—Peter Schiff Urges Biden to Offload U.S. Bitcoin Reserves Before Trump’s Return

Sell It All—Peter Schiff Urges Biden to Offload U.S. Bitcoin Reserves Before Trump’s Return

Renowned gold advocate and economist Peter Schiff has reignited debate about the U.S. government’s bitcoin holdings. Schiff took to social media on Monday, urging President Joe Biden to liquidate all seized bitcoin assets before Donald Trump’s potential return to office, arguing that such a move would prevent future policy complications and reduce the 2024 budget deficit.

Schiff Dismisses U.S. Strategic Bitcoin Reserve as “Nonsense”

The idea of a U.S. strategic bitcoin reserve has gained traction in recent months, partly due to Senator Cynthia Lummis’s “Bitcoin Act of 2024” and Donald Trump’s support of bitcoin. The proposed legislation aims to establish a national bitcoin reserve, strengthen the U.S. dollar, and enhance American dominance in the cryptocurrency space.

Schiff, however, is strongly opposed. He has warned that pursuing bitcoin supremacy could destabilize the U.S. dollar and harm the country’s economic standing. On Monday, he called on President Biden to sell off the government’s bitcoin holdings before leaving office, saying:

“The one good thing Biden can do before leaving office is sell all the bitcoin currently held by the U.S. Govt. Not only would the money raised reduce the 2024 budget deficit, but it would put an end to all the nonsense about creating a harmful ‘Strategic’ Bitcoin Reserve.”

Bitcoin Advocates Fire Back

Schiff’s comments drew sharp responses from bitcoin proponents. One user countered that selling bitcoin now would backfire as the U.S. might have to repurchase it at higher prices, referencing Trump’s hints at supporting bitcoin initiatives.

Another user dismissed gold’s relevance compared to bitcoin, saying:

“Gold’s market cap doesn’t stand a chance against bitcoin.”

Schiff quickly responded, asserting that Trump’s stance doesn’t include buying bitcoin, just refraining from selling what’s already held. He added that Biden could preempt Trump by liquidating the holdings now, sparing Trump the decision later.

Gold vs. Bitcoin: The Ideological Divide

Schiff’s critique underscores the growing ideological divide between traditional gold advocates and cryptocurrency supporters. While gold has long been seen as a safe haven asset, bitcoin’s supporters argue it represents the future of global finance. The clash reflects broader debates about how digital currencies should fit into national economic and geopolitical strategies.

The Bigger Picture

As of now, the U.S. government holds 198,109 BTC, valued at $19.33 billion. Even if sold, this amount would barely make a dent in addressing the 2024 budget deficit.

The growing interest in a strategic bitcoin reserve signals a shift in the global financial narrative. Whether the U.S. embraces or rejects the idea will likely influence how major economies integrate digital assets into fiscal policy. Schiff’s opposition serves as a reminder that the path forward is anything but unanimous, with debates over crypto’s role in national strategy far from settled.